Robbins Arroyo LLPhttps://www.robbinsarroyo.com
Leading the Fight for Shareholders' RightsWed, 13 Dec 2017 23:15:27 +0000en-UShourly1https://wordpress.org/?v=4.9.1Globalscapehttps://www.robbinsarroyo.com/globalscape/
https://www.robbinsarroyo.com/globalscape/#respondWed, 13 Dec 2017 23:14:27 +0000https://www.robbinsarroyo.com/?p=16701GlobalSCAPE Accused of Overstating Its Financial Figures According to a class action complaint filed against GlobalSCAPE (GSB), Global officials assured investors of the effectiveness of the company’s internal control over financial reporting in Global’s public filings. In reality, Global had overstated accounts receivable, revenues, total assets, and total stockholder equity by hundreds of thousands of […]

According to a class action complaint filed against GlobalSCAPE (GSB), Global officials assured investors of the effectiveness of the company’s internal control over financial reporting in Global’s public filings. In reality, Global had overstated accounts receivable, revenues, total assets, and total stockholder equity by hundreds of thousands of dollars. On August 7, 2017, Global disclosed that its audit committee was investigating transactions in 4Q 2016 related to improper arrangements with customers that circumvented the company’s internal controls and their potential effect on previously reported revenue. Global further stated that it intends to restate prior financial statements in an amended Form 10-K for the year ended December 31, 2016, and an amended Form 10-Q for the quarter ended March 31, 2017. On this news, Global’s stock fell over 17% to close at $3.87 per share on August 8, 2017. Since then, Global’s stock has fallen even further, closing at only $3.56 per share on December 12, 2017.

]]>https://www.robbinsarroyo.com/eagle-bancorp-inc/feed/0Ophthotech Corporationhttps://www.robbinsarroyo.com/ophthotech-corporation-2/
https://www.robbinsarroyo.com/ophthotech-corporation-2/#respondWed, 13 Dec 2017 18:29:20 +0000https://www.robbinsarroyo.com/?p=16707Ophthotech Corporation Accused of Misrepresenting Approval Capacity of Its Drug Investors of Ophthotech Corporation (OPHT) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 11, 2015 and December 12, 2016. According to the complaint, Ophthotech misrepresented Fovista’s efficacy and potential for […]

]]>Ophthotech Corporation Accused of Misrepresenting Approval Capacity of Its Drug

Investors of Ophthotech Corporation (OPHT) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 11, 2015 and December 12, 2016. According to the complaint, Ophthotech misrepresented Fovista’s efficacy and potential for approval by the U.S. Food and Drug Administration. For example, Ophthotech touted that Fovista was “well position[ed] to potentially be first to market in this class of novel therapy for wet [age-related macular degeneration]” and that it had made “significant progress related to [its] clinical development.” It came as a surprise to investors when Ophthotech revealed on December 12, 2016 that Fovista, administered in combination with Lucentis, had failed to achieve its primary endpoint in two phase 3 clinical trials. On this news, Ophthotech’s stock fell approximately 86% to close at $5.29 per share on December 12, 2016. In a year’s time, the company’s stock has since fallen even further, closing at only $2.89 per share on December 11, 2017.

]]>https://www.robbinsarroyo.com/ophthotech-corporation-2/feed/0Lannett Cohttps://www.robbinsarroyo.com/lannett-co/
https://www.robbinsarroyo.com/lannett-co/#respondTue, 12 Dec 2017 19:27:30 +0000https://www.robbinsarroyo.com/?p=16705Lannett Accused of Colluding With its Peers to Fix Generic Drug Prices Investors of Lannett (NYSE: LCI) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 9, 2013 and November 3, 2016. According to the complaint, Lannett conspired with its […]

]]>Lannett Accused of Colluding With its Peers to Fix Generic Drug Prices

Investors of Lannett (NYSE: LCI) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between May 9, 2013 and November 3, 2016. According to the complaint, Lannett conspired with its industry peers to fix the prices of at least four of the company’s generic drugs in order to reap higher profits and secure the financing needed to make a series of massive acquisitions. The extent of Lannett’s fraud was first revealed on July 16, 2014, when Lannett disclosed that it received an inquiry from the Connecticut Attorney General regarding its pricing of Digoxin. Lannett officials maintained that the company had done nothing wrong while Lannett continued to become the focus of multiple government investigations. On November 3, 2016, Bloomberg reported that Lannett was being investigated by the U.S. Department of Justice for suspected price collusion, causing the company’s stock to fall to $17.25 per share that day. Lannett’s stock has yet to recover to its class period high of $71.15 per share.

]]>Health Insurance Innovations Accused of Hiding Rejection of a Major License Application

Investors of Health Insurance Innovations (NasdaqGM: HIIQ) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 4, 2016 and September 11, 2017. According to the complaint, Health Insurance Innovations officials touted positive projections for the company’s future growth while omitting that the Florida Office of Insurance Regulation (“OIR”) had denied its application for a third-party insurance administrators (“TPA”) license, which is required for the company to operate in Florida. When a research report revealed that Health Insurance Innovations’ application had been denied because the company continuously failed to provide information requested by the OIR, the company’s stock fell $6.55 per share, or nearly 22%, to close at $23.35 per share on September 11, 2017. Since then, the company’s stock has fallen even further, closing at $22.80 per share on December 8, 2017.

]]>https://www.robbinsarroyo.com/health-insurance-innovations/feed/0Applied Optoelectronics, Inc.https://www.robbinsarroyo.com/applied-optoelectronics/
https://www.robbinsarroyo.com/applied-optoelectronics/#respondTue, 12 Dec 2017 01:33:09 +0000https://www.robbinsarroyo.com/?p=16696Applied Optoelectronics Accused of Hiding Loss of Business from Major Customer According to a recently filed class action complaint, Applied Optoelectronics (AAOI) officials predicted that the company would deliver another record quarter and that its top and bottom-line results would exceed the company’s guidance. Despite the company’s optimistic projections, Applied Optoelectronics officials did not disclose […]

]]>Applied Optoelectronics Accused of Hiding Loss of Business from Major Customer

According to a recently filed class action complaint, Applied Optoelectronics (AAOI) officials predicted that the company would deliver another record quarter and that its top and bottom-line results would exceed the company’s guidance. Despite the company’s optimistic projections, Applied Optoelectronics officials did not disclose that a major customer was reducing its purchases of the company’s 40G receivers, which would have a severe negative impact on its financial performance. When the company revealed the bad news on August 3, 2017, Applied Optoelectronics’ stock fell by $33.39 per share, or over 34%, to close at $64.60 per share on August 4, 2017. The stock continues to fall, and is now trading at just $38.68 per share.

Purchasers of Tableau Software, Inc. (DATA) filed a securities class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between June 3, 2015 and February 4, 2016. According to the complaint, Tableau failed to disclose that product launches and upgrades by its competitors were negatively impacting the company’s profitability. In fact, during the company’s November 5, 2015 earnings call, Tableau’s Chief Executive Officer Christian Chabot stated: “I’ll close where I began, which is we don’t see it fundamentally changing the competitive dynamic for Tableau.” Then, just a few months later, on February 4, 2016, Tableau’s Chief Financial Officer finally admitted that “the competitive dynamic has become more crowded and difficult.” As news of the true effects competition was having on Tableau’s growth and outlook for profitability reached the market, Tableau’s stock fell $73.54 per share, or over 64%, to close at $36.60 per share on February 9, 2016. The stock has yet to recover to its class period high of $114.87.

]]>https://www.robbinsarroyo.com/tableau-software/feed/0Electronics for Imaging, Inc.https://www.robbinsarroyo.com/electronics-for-imaging/
https://www.robbinsarroyo.com/electronics-for-imaging/#respondMon, 11 Dec 2017 19:35:29 +0000https://www.robbinsarroyo.com/?p=16699Electronics for Imaging, Inc. Accused of Improperly Recognizing Revenue Purchasers of Electronics for Imaging, Inc. (EFII) have filed a securities class action complaint for alleged violations of the Securities Exchange Act of 1934 by the company’s officers and directors from February 22, 2017 through August 3, 2017. According to the complaint, Electronics for Imaging made a […]

Purchasers of Electronics for Imaging, Inc. (EFII) have filed a securities class action complaint for alleged violations of the Securities Exchange Act of 1934 by the company’s officers and directors from February 22, 2017 through August 3, 2017. According to the complaint, Electronics for Imaging made a series of public statements representing that the company had effective internal controls over financial reporting, while at the same time improperly recognizing revenue. On August 3, 2017, Electronics for Imaging announced a delay in releasing its second quarter 2017 preliminary results due to an internal investigation as to its accounting practices. On this news, shares of Electronics for Imaging fell $21.61 per share, or over 45%, to close at $26.05 per share on August 4, 2017 and have yet to retain their value.

]]>https://www.robbinsarroyo.com/electronics-for-imaging/feed/0Citizens Inc.https://www.robbinsarroyo.com/citizens-inc-dec-2017/
https://www.robbinsarroyo.com/citizens-inc-dec-2017/#respondFri, 08 Dec 2017 20:56:01 +0000https://www.robbinsarroyo.com/?p=16714Citizens Accused of Engaging in Ponzi Stock Scheme A securities class action complaint has been filed against Citizens. The complaint is brought on behalf of all purchasers of Citizens securities between March 11, 2015 and April 27, 2017, for alleged violations of the Securities Exchange Act of 1934 by Citizens’ officers and directors. According to […]

A securities class action complaint has been filed against Citizens. The complaint is brought on behalf of all purchasers of Citizens securities between March 11, 2015 and April 27, 2017, for alleged violations of the Securities Exchange Act of 1934 by Citizens’ officers and directors. According to the complaint, Citizens uses deceptive marketing practices to lure clients into purchasing insurance policies. While Citizens’ brokers masque themselves as financial advisors with international licenses, they permit Citizens’ sales associates to input inaccurate stock projection information into marketing collateral distributed to their clients. Moreover, the multilevel marketing sales force has continuously marketed the policies as tax-exempt even after the company officially recognized that the majority of its policies are not tax-exempt. As a result, Citizens’ stock price was artificially inflated until March 8, 2017, when it was reported that the company was under investigation by the U.S. Securities and Exchange Commission and Internal Revenue Service for its unlawful business practices.

]]>https://www.robbinsarroyo.com/citizens-inc-dec-2017/feed/0Tivity Health, Inc.https://www.robbinsarroyo.com/tivity-health-inc/
https://www.robbinsarroyo.com/tivity-health-inc/#respondWed, 06 Dec 2017 18:21:04 +0000https://www.robbinsarroyo.com/?p=16692Tivity Accused of Downplaying Competitive Risks to its Business According to the class action complaint against Tivity Health, Inc. (TVTY), despite acknowledging the risk that health plan customers could offer services that compete directly with Tivity’s offerings, Tivity officials projected an optimistic outlook for the company in its public filings. Tivity stated, “We are confident of […]

According to the class action complaint against Tivity Health, Inc. (TVTY), despite acknowledging the risk that health plan customers could offer services that compete directly with Tivity’s offerings, Tivity officials projected an optimistic outlook for the company in its public filings. Tivity stated, “We are confident of our long-term opportunity to produce profitable growth and to increase shareholder value.” However, Tivity officials failed to disclose that they were aware of a plan by one of the company’s major customers, United Healthcare, to expand its senior fitness benefits program, which would represent direct competition to Tivity’s SilverSneakers program. On November 6, 2017, United Healthcare issued a press release announcing the expansion of its fitness benefits to Medicare Advantage plans in Austin, Texas. On this news, Tivity’s stock fell $16.45 per share, or approximately 34%, to close at $31.60 per share on November 6, 2017.